AGP Executive Report

Anti-Crisis Tax Tweaks: The Senate approved the Anti-Crisis Plan as urgent, cutting taxes on lottery and betting winnings (25% only above RD$600,000; 15% for RD$200,000–RD$600,000; under RD$200,000 exempt) and lowering the annual single tax for lottery booths to RD$85,000 from RD$120,000. Fiscal Pressure on the Top End: Finance Minister Magín Díaz told lawmakers the bill would raise RD$40–RD$50 billion mainly from the wealthiest 1%, without increasing ITBIS, while promising an accountability mechanism for how funds are used. Tourism Momentum: DR welcomed 5.64 million visitors in the first five months of 2026 (+8%); air arrivals rose 10.8% and hotel occupancy topped 79% (Jan–Apr), with 93% of tourists saying they’d return. Business Tourism Upgrade: Demolition of the former Hotel Santo Domingo is set to start in three months to clear the way for a new Santo Domingo Convention Center, aimed at boosting conventions and hotel occupancy. Aviation & Jobs: FL Technics secured FAA Part 145 approval to start MRO operations in Punta Cana, while IDAC certification also clears its Punta Cana maintenance hub. Airline Growth: Arajet posted a record May, carrying 163,000+ passengers and taking 10%+ of DR’s total passenger traffic that month. Trade & Diplomacy: The EU-CARIFORUM joint council meeting returns to Santo Domingo (June 18–20) to push Economic Partnership Agreement implementation and expand trade and investment. Regional Connectivity: Arajet launched a new Punta Cana–Rosario route (3x weekly), adding Rosario as its fourth Argentine city. Corruption Case Fallout: Courts ordered forfeiture of assets tied to the Coral and Coral 5G cases, including 114 vehicles, 159 properties, luxury watches, firearms, and millions in cash. US-DR Nuclear Deal: The U.S. and DR signed a Nuclear Cooperation Memorandum of Understanding to expand peaceful civil nuclear collaboration. Visa Path Update: Foreign Minister Roberto Álvarez said DR is progressing toward Schengen visa-free access, but document fraud remains the main hurdle. Youth Prevention Drive: President Abinader launched “Inquebrantables,” funded by seized assets, targeting resilience and prevention for Dominican youth. Fisheries Transparency Push: DR joined 14 other countries in signing the Mombasa Declaration to fight illegal fishing through better vessel and licensing transparency.

Tax Reform Debate: Finance Minister Magín Díaz told lawmakers that over 90% of expected revenue from the proposed Economic Growth, Tax Simplification and International Crisis Mitigation bill would come from the wealthiest 1%, aiming to protect the middle class and MSMEs without raising ITBIS. Tourism Momentum: The DR welcomed 5.64 million visitors in the first five months of 2026 (+8%), with 4.15 million by air and strong hotel occupancy (79%+ Jan–Apr). Aviation Growth: Arajet carried 163,000+ passengers in May and captured 10%+ of DR-bound traffic, setting a new monthly record; separately, FL Technics secured IDAC certification for a Punta Cana MRO hub and FAA approval to serve U.S. carriers. Business & Trade Links: U.S. Ambassador Leah Francis Campos toured Grupo SID facilities, highlighting U.S. trade opportunities; Banco Popular, AZUL and Mastercard also convened B2B payment clients to discuss digitization and cash-flow tools. Governance & Modernization: Abinader launched the “Inquebrantables” youth resilience campaign funded by seized assets, and submitted a civil code reform to align law effective dates and recognize official electronic publication. Regional Spotlight: The DR will host the World Governments Summit Regional Dialogue again in 2026 (Cap Cana, Nov. 20–21).

Anti-Corruption Crackdown: A Dominican court ordered the forfeiture of 422 assets tied to the Coral and Coral 5G cases, including 114 vehicles, 159 properties, firearms, luxury watches, and millions in cash, transferring them to the state. Money Laundering Sentences: Three former high-ranking military officials received 20-year prison terms for their role in a money laundering network, with additional officers and a bank employee also sentenced. B2B Payments Push: Banco Popular, AZUL and Mastercard gathered 350+ corporate and SME clients to spotlight digitization and AI-driven tools for managing B2B payments and cash flow. Tech Modernization: SoftwareOne expanded its Google Cloud alliance in the DR to help firms adopt AI, data analytics, automation, and modern infrastructure. Aviation Upgrade: IDAC certified a new Punta Cana MRO center (Airbus A320 and Boeing 737, with capacity for widebodies), positioning the country as a regional maintenance hub. Trade & Jobs Impact: DP World’s Caucedo operations are linked to nearly 5,000 jobs nationwide in 2024, with spillovers across transport, warehousing, manufacturing, customs and services. Legal Reform Agenda: The government sent a bill to align the effective dates of laws between the National District and Santo Domingo province and recognize official electronic publication. Public Sector AI Training: MAP announced 2,000 GenAI scholarships for public servants, supported by the IDB, focused on ethical and safe use in government. Regional Cooperation: The DR hosted CECC/SICA culture ministers and launched the Santiago Health Tourism Alliance, aiming to strengthen creative industries and grow medical tourism. Business-Climate Context: A UNDP report launched in the DR warns that crime, climate shocks, misinformation and debt are pressuring democracy across Latin America and the Caribbean.

Aviation & Infrastructure: IDAC certified a new Aircraft Maintenance, Repair and Overhaul (MRO) center in Punta Cana, built by Puntacana Group with FL Technics, positioning the DR as a regional hub for heavy aircraft maintenance. Tourism & Business Growth: Arajet logged its best May ever, moving 163,000 passengers to/from the DR (plus 183,000 including connections), reinforcing its push to become a top carrier in the national market. Health Tourism: Santiago launched a Health Tourism Alliance to unite hospitals, specialists, universities and tourism players, aiming to strengthen the city’s role as a Caribbean medical hub. Trade & Security: Canada’s Commercial Corporation signed a government-to-government MoU with the Dominican Ministry of Defense to support procurement of Canadian defense goods and services. Tax & Industry Rules: Adopron backed parts of the government’s anti-crisis plan, including clearer rules for alcohol tax calculation and stronger traceability to curb illicit trade. Justice & Risk for Businesses: A court ordered Jet Set nightclub owners Antonio and Maribel Espaillat to stand trial for involuntary manslaughter after the 236-death roof collapse. Public Space Enforcement: A local report says some car dealers keep occupying Santo Domingo sidewalks for vehicle displays, blocking pedestrians and violating transit rules. Regional Governance: A UNDP report launched in the DR flags organized crime, climate shocks and misinformation as growing pressures on democracy across Latin America and the Caribbean.

Air Travel & Tourism: Arajet logged its best May ever, moving 183,000+ passengers (including connections) and taking 10%+ of Dominican inbound/outbound traffic, reinforcing its push to make the DR a regional air hub. Public Finance & Remittances: The Central Bank reported remittances of US$5.17B in the first five months of 2026 (+5.4% y/y), with May alone up 10.6% to US$1.09B, driven mainly by the U.S. diaspora. Health & Accountability: Operation Onco14 led to arrests of former Cibao oncology executives accused of diverting cancer-care funds from SeNaSa, with charges including fraud, bribery, cyber-related crimes, and money laundering. Business & Trade Finance: Banco Popular secured up to US$50M from Spain’s ICO to fund projects tied to tourism, energy, construction, real estate, hospitality, and digital/energy-efficiency goals. Regional Health Cooperation: The DR hosted a malaria-elimination meeting with Latin American and Caribbean partners, targeting elimination by 2027. Infrastructure & Security: DNV won a cybersecurity contract for Santiago’s monorail, supporting safety-critical rail systems and cyber risk management. Legal/Justice: Jet Set nightclub owners Antonio and Maribel Espaillat were sent to trial for involuntary manslaughter over the 2025 roof collapse that killed 236.

Court Case: A judge ordered Antonio and Maribel Espaillat, owners of Santo Domingo’s Jet Set nightclub, to stand trial for involuntary manslaughter over the April 8, 2025 roof collapse that killed 236 people and injured more than 100; prosecutors allege intimidation of employees and negligence tied to maintenance and structural changes. Judicial Backlash: The Jet Set Justice Movement says the siblings are still getting “privileges” (bail, travel ban, reporting) and argues the legal handling is too lenient given the scale of the tragedy. Business & Policy: The AIRD says the government’s Anti-Crisis Plan bill is a chance to balance measures across productive sectors, but flags concerns about eliminating ITBIS on asphalt/AC-30 as it may favor imports over local production. Remittances: The Central Bank reports remittances hit US$5.17B in the first five months of 2026 (+5.4% y/y), with May alone at US$1.09B (+10.6% y/y). Finance & Trade: Banco Popular signed a deal for up to US$50M with Spain’s ICO to fund tourism, energy, construction, real estate and sustainability-linked projects. Aviation & Tourism: Arajet carried over 163,000 passengers in May 2026 (10%+ of total arrivals/departures), setting a monthly record; Puerto Plata will host the PAMAC Cruise Summit 2026, aiming to boost cruise-driven spending. Infrastructure & Security: DNV was selected to provide cybersecurity services for Santiago’s monorail system, supporting safety-critical rail and digital defenses. Public Procurement: PROLIDERCOOP will host an MSME forum on the new Public Procurement Law (47-25) to help state suppliers navigate contracting rules.

Public Finance & Courts: Prosecutors say former executives tied to Operation Onco14 will face charges including fraud, money laundering, and high-tech crimes after an alleged scheme to divert funds meant for cancer patients and SeNaSa resources at the Cibao Oncology Center. MSME & Procurement: PROLIDERCOOP will host a forum on June 27-28 to help micro, small and medium suppliers navigate the new Public Procurement Law 47-25 and its regulation 52-26. Remittances: The Central Bank reports remittances reached $5.1701B in the first five months of 2026, up 5.4% year-on-year, with the U.S. sending 82.3% of formal flows in May. Energy Transition: Solar keeps leading renewable growth, with installed solar capacity up 100 MW between 2025 and June 2026 and renewables now exceeding 2,000 MW. Social Spending Watch: The government is reviewing social protection beneficiaries to target subsidies better and generate about RD$10B in savings. Fuel Prices: MICM set weekly fuel increases of RD$3 to RD$6 per gallon for gasoline and diesel. Local Infrastructure & Services: DIDA urged AFP affiliates in Santiago to claim pending pension funds, while OMSA temporarily suspended part of Santo Domingo’s Cable Car Line 1 for maintenance.

Air Travel Costs: The Dominican Association of Airlines (ADLA) warned that a proposed additional US$10 charge on airline tickets could hurt tourism, connectivity and the country’s competitiveness, arguing the cost increase would ripple through the whole air-travel value chain. Energy Transition: Solar is driving the Dominican Republic’s renewable push, with installed solar capacity up 100 MW between 2025 and June 2026 and cumulative growth of 806.6% since 2020, as the government targets cleaner energy to reduce exposure to oil-price shocks. Tourism Regulation: Tourism officials say the next decade’s biggest hurdle is land-use planning, stressing that the destination experience—not just hotels—will determine growth, while investor security and incentive rules may need alignment with territorial plans. Public Spending & Subsidies: The government is reviewing social protection programs to generate about RD$10 billion in savings by removing beneficiaries who no longer meet vulnerability conditions, aiming to better target subsidies. Fuel Prices: Fuel costs rise for June 13–19, with premium gasoline up RD$6 and regular gasoline up RD$3, while LPG and natural gas stay unchanged. Cybersecurity Push: The country launched the Cyber Cluster Dominican Republic, a public-private initiative to strengthen cybersecurity talent, innovation and digital resilience, bringing together major tech and security firms. Transport Disruption: Santo Domingo’s cable car will temporarily suspend service on Line 1, section 2, between Charles de Gaulle and Sabana Perdida for inspection work.

Energy & Industry: Solar keeps pulling ahead in the Dominican Republic’s clean power push, with installed capacity up 100 MW from 2025 to June 2026 and cumulative growth of 806.6% since 2020, while wind lags and total renewables now top 2,000 MW. Security & Trade: U.S.-led marine interdictions with partners seized about 5,612 pounds of cocaine across three operations, with smugglers detained and a reported market value above $305 million. Innovation & Environment: Intec researchers extracted alginate from sargassum, aiming to turn a major coastal problem into inputs for food, pharma, cosmetics and other industries. Transport & Costs: Fuel prices rise again for June 13–19 (premium gasoline +RD$6; regular +RD$3; diesel +RD$3 to +RD$6), while merchants back restricting daytime heavy-vehicle traffic to cut congestion and accidents. Tech & Cybersecurity: The government launched a Cyber Cluster Dominican Republic to boost cybersecurity talent, innovation and digital resilience through a public-private board. Tourism & Infrastructure: Tourism growth is steady, but land-use planning is flagged as the key regulatory hurdle for the next decade; meanwhile, cruise arrivals are set to add 15 ships in June–July. Business Services: Viettel Dominicana enters as the country’s fourth mobile operator with a $560m investment plan.

Renewable Energy Push: Solar is leading the Dominican Republic’s clean power expansion, with installed capacity up 100 MW between 2025 and June 2026 and cumulative growth of 806.6% since 2020, while wind, biomass and hydro lag—supporting a goal of clean sources reaching about 25% of consumption. Security & Trade: U.S.-led maritime and air interdictions with partners seized about 5,612 pounds of cocaine across three operations, totaling an estimated $305M in value. Innovation From Sargassum: Intec researchers extracted alginate from Sargassum for use across food, cosmetics, agriculture and pharma, turning a Caribbean environmental problem into industrial input. Transport & Logistics: Merchants back restricting daytime routes for heavy vehicles in Greater Santo Domingo and Santiago to cut congestion and accidents, arguing trucks can travel overnight instead. Energy Costs: Fuel prices rise for June 13–19—premium gasoline +RD$6, regular +RD$3; premium diesel +RD$6, regular +RD$3—while LPG and natural gas stay unchanged. Digital Resilience: The DR launched a Cyber Cluster Dominican Republic, a public-private effort to strengthen cybersecurity, talent and collaboration with major tech firms. Tourism Regulation: Tourism growth is steady, but officials say the next decade hinges on land-use planning and investor legal security to guide destination development. Regional Business Moves: Viettel Global enters the DR as the country’s fourth mobile operator, investing $560M in licenses, spectrum and networks. Public Works Agenda: President Abinader will lead a Council of Ministers in Santiago and inaugurate projects including sports facilities and drinking water infrastructure.

Government Agenda & Infrastructure: President Luis Abinader will lead this Sunday’s Council of Ministers in Santiago, then inaugurate sports, drinking-water, and road works, plus meet students and business leaders to track regional development. Social Protection Targeting: The Finance Ministry says it has started vetting social programs to save about RD$10 billion this year by removing beneficiaries who no longer meet vulnerability conditions, aiming to protect those most in need. Fiscal Measures Debate: The Bar Association (CARD) backs the government’s fiscal response but asks for incentives for legal professionals; meanwhile, ASECENSA warns that “fiscal patches” could hurt companies and jobs and calls for tackling informality and cutting spending. Fuel Prices: Fuel costs rise again for June 13–19—premium gasoline +RD$6, regular +RD$3; diesel +RD$3 to +RD$6—while LPG and natural gas stay unchanged. Cybersecurity Push: The DR launched a Cyber Cluster Dominican Republic, a public-private effort to strengthen cybersecurity, talent, and digital resilience with major tech firms and support from the national cybersecurity center. Tourism & Cruise Growth: Tourism Minister David Collado says 15 more cruise ships are expected in June and July, including more passenger volume via negotiations with Royal Caribbean and added docking in Cabo Rojo, Pedernales.

Tax & Fuel Shock Plan: The Dominican government is moving a new anti-crisis package to Congress, aiming to raise about RD$80–90 billion through tax reform and spending containment, including a 3-year corporate income tax jump to 30% for large firms, higher taxes on checks/e-transfers, and a proposed US$10 airline ticket surcharge; it also plans to freeze fuel prices for three months if oil stays under US$95/bbl. Micro-Enterprise Relief: The same reform package would repeal the ISR advance payment for micro-enterprises (78% of ISR filers in 2025) and simplify small-business payments to three annual installments, plus eliminate outdated levies like the mortgage tax. Business Climate & Informality: CODESSD backed the fiscal reform direction but urged deeper fixes to tackle high informality, saying it weakens productivity and tax collection. Press Freedom: The National Union of Social Communication Workers (UNTC) rejected any initiative that could restrict freedom of expression or investigative journalism, warning against “gag law” effects. Trade & Agriculture: A new look at Dominican mango exports highlights growing demand and compliance upgrades (like GlobalG.A.P.) supporting shipments to the US and Europe. Tech & Telecom: Viettel approved a $560 million investment to enter the Dominican mobile market as the fourth operator via Viettel Dominicana. Real Estate Financing Pressure: Caribbean and Latin America hotel and commercial owners are being warned about a 2026 debt maturity crunch and refinancing costs that are hitting hospitality hardest.

Tax Reform Push: The Dominican government’s anti-crisis fiscal plan would raise about RD$80–90 billion via new revenue measures, including a 30% corporate income tax for three years on large firms (over RD$1B in annual revenue), plus higher taxes on checks/electronic transfers and other targeted levies. Oil & Fuel Stability: Officials also plan to freeze fuel prices for three months if oil stays at or below US$95 per barrel, aiming to limit subsidy pressure on consumers. Micro-Enterprise Relief: The package would repeal the ISR advance payment for micro-enterprises (78% of ISR filers in 2025) and shift small businesses to three annual payments instead of twelve, alongside steps to eliminate outdated taxes like the mortgage tax. Business Climate & Competitiveness: CODESSD backed the reform direction but urged deeper fixes, especially tackling high informality that weakens tax collection and social coverage; AIRD also stressed that sustainability must go hand in hand with competitiveness. New Telecom Player: Viettel approved a US$560 million investment to enter the Dominican mobile market as the fourth operator, via Viettel Dominicana. Agriculture Policy: The Senate approved in first reading a bill creating the Dominican Institute of Cassava (INDOCASABE) to boost production, processing, and exports. Trade & Security: The U.S. Coast Guard plans tightened entry rules for ships departing Haiti, a move that could affect regional shipping flows.

Telecom Competition: Viettel approved entry into the Dominican mobile market with a planned US$560M investment via Viettel Dominicana, aiming to compete as the fourth operator against Claro, Altice, and Viva. Energy Expansion: Energy & Mines Minister Joel Santos says the DR is set for its biggest power buildout in decades, with firm generation capacity expected to rise over 50% from 2025-2028 as demand climbs toward a 4,250 MW peak. Ports & Logistics: The DR became First Vice President of the OAS Inter-American Committee on Ports, boosting its role in regional port sustainability, tech, and logistics initiatives. Agriculture Policy: The Senate approved in first reading a bill to create the Dominican Institute of Cassava (INDOCASABE) to support production, processing, and exports. Bilateral Trade Push: The Dominican-Israeli Chamber of Commerce relaunches with a tech, innovation, and entrepreneurship agenda to restart bilateral business activity. Public Safety Training: The U.S. Embassy and DNCD completed specialized training to help dismantle clandestine drug labs, targeting synthetic drugs like fentanyl. Travel & Tourism Signals: Southwest opened bookings for winter 2027 with new Caribbean and Latin America routes, while Royal Caribbean added an extra La Romana port call on a July 4 sailing. Identity & Security: The DR’s new national ID card was named Best Identity Document 2026 in Latin America, highlighting upgrades in security and digital identity management. Health & Business Growth: VVT Med entered the DR through Antilles Medical as exclusive distributor for ScleroSafe under a trial-to-five-year pathway. Crime & Compliance: U.S. authorities announced convictions of two Dominican nationals tied to a counterfeit pharmaceutical scheme involving fentanyl-laced pills.

Energy Expansion: Energy & Mines Minister Joel Santos says the Dominican Republic is set for its largest energy buildout in decades, with firm generation capacity projected to rise over 50% between 2025 and 2028 as demand peaks near 4,250 MW this year. Inflation Watch: The Central Bank confirmed annualized inflation at 5.35% in May, with food easing (chicken, plantains) only partly offset by higher gasoline. Border Security & Growth: President Abinader unveiled the “Strong Border” plan—more troops, expanded smart fencing, drones and real-time monitoring—plus binational market upgrades and new vocational schools in border provinces. Ports & Trade: The DR was elected First Vice President of the OAS Inter-American Committee on Ports (CIP), aiming to boost sustainability, tech, and logistics integration. Regional Agriculture Deal: The DR and Guyana plan large-scale mango and avocado production, with Dominican experts supporting farmer training. Identity & Tech: The new Dominican national ID card won “Best Identity Document 2026” for security and operational performance, highlighting local tech participation. Social Investment: APAP will fund RD$131 million in 2026 for education, health, employability, entrepreneurship, and environmental sustainability. Business Debate: The Chamber of Deputies mapped RD$193.6M for Parlacen participation, renewing criticism over regional spending value. Aviation Incident: Dominican pilots’ association urges the DR to keep control of the La Romana crash investigation involving a US-registered Gulfstream.

Inflation Watch: The Central Bank confirmed annualized inflation hit 5.35% in May, above its 4% target band, with staples like chicken and plantains easing while fuel rose. Border Security & Development: President Abinader unveiled a “Strong Border” plan—more troops, expanded smart fencing, drones and real-time monitoring—plus upgrades to binational markets and vocational training in border provinces. Regional Diplomacy: The DR will transfer SICA’s Pro Tempore Presidency to Belize at end-June after chairing an extraordinary foreign ministers meeting. Parlacen Funding Debate: The 2026 budget sets aside RD$193.6M for the DR’s Parlacen participation, drawing criticism over value for money. Social Finance: APAP will invest RD$131M in 2026 for education, health, employability, entrepreneurship and environmental sustainability. Digital Skills Recognition: DR’s Armed Forces and National Police vocational schools won top honors at the Latam Digital Awards 2026. Aviation Safety Push: Dominican pilots’ association says the La Romana crash probe must stay under Dominican authority, despite the US registration and pilots. Trade & Business Links: The Dominican-Israeli Chamber of Commerce relaunched to boost investment and partnerships. Environment vs Mining Claims: Docalsa says its remediation project is restoration-only—terrain stabilization, revegetation and tree planting—under Environment Ministry oversight. Export Competitiveness: The WEIDE Fund is training women entrepreneurs in digital trade, with the DR named as a pilot country.